According to William O'Neill of IBD fame, one of the most profitable trading/investing techniques is to find stocks which are emerging from a meaningful base on heavy volume.
The basing pattern can occur flowing a significant run, or conversely, from a correction/crash. In either case, emergence from the base on heavier than normal volume can be an indication that "smart money" is getting back into the stock for a significant upside move (especially if there is no news to account for the breakout).
Remember, as Mad Monk wold say, "volume precedes price, which precedes the alibi (news event)."
From a risk standpoint, flat-base breakouts following a correction/crash are the least risky, since much of the bad news has already been discounted in the price of the stock. These are the types of the stocks that will have the greatest emphasis on this thread.
No penny stocks and no stocks under $5/share are allowed on this discussion thread.
Lets all make some real money.
DD |
